MEDICAID COMPLIANT ANNUITIES

Medicaid compliant annuities are single premium immediate annuity (SPIA) contracts with an added endorsement that makes the annuity irrevocable and non-assignable.  In order for an annuity to be Medicaid compliant it must meet the guidelines set forth in the Deficit Reduction Act of 2005.  The annuity must be considered “actuarially sound” which requires that the original cost of the annuity will be paid out within a term equal to or less than the actuarial life expectancy of the annuitant and the annuity must name the state Medicaid program as the primary beneficiary of the annuity, to the extent of any Medicaid benefits are provided. In the appropriate situations Medicaid compliant annuities can be an important component of an estate plan.

Edward Stone of Stone Capital Assets is a licensed life producer in Connecticut and can assist you and your estate attorney with your needs regarding Medicaid compliant annuities.